The Mid-Stream Demonstration Plant Project, a joint venture between Calix and Pilbara Minerals, has received formal approval to resume construction in Western Australia.
This decision comes after a temporary halt in October 2024 due to challenging lithium market conditions.
The project’s revival was made possible by a $15 million grant from the Western Australian government, awarded in January 2025.
This funding, combined with an existing $20 million grant from the Australian government’s Modern Manufacturing Initiative, has provided the necessary financial support to move forward.
At the heart of this project is the world’s first industrial-scale electric spodumene calciner, to be built at Pilbara Minerals’ Pilgangoora lithium site.
This innovative technology aims to decarbonise one of the most carbon-intensive processes in the battery materials supply chain.
Dale Henderson, Managing Director and CEO of Pilbara Minerals, expressed enthusiasm for the project’s potential impact, stating: “This technology could create additional local jobs in Western Australia while producing a higher-value, lithium-enriched product at the mine site.
“This more concentrated product reduces transport volumes to our customers and ensures more value is captured onshore for Australia.”
The project is expected to generate significant employment opportunities, with approximately 80 jobs during the construction phase and 35 operational positions once completed.
There is potential for further job creation if the project expands to full scale.
Construction is set to resume immediately, with procurement activities already underway.
The project team aims to complete all construction works by the fourth quarter of 2025.
This demonstration plant is a crucial component of Pilbara Minerals’ strategy to integrate more effectively into the battery materials supply chain.
Henderson emphasised the broader implications for Australia’s mining industry, stating: “Australia has an opportunity to do more than dig and ship our minerals and through this joint venture we are looking to prove up a new way to make this possible, not only for Pilbara Minerals but for the whole industry.”
As the global demand for lithium continues to grow, driven by the electric vehicle and renewable energy storage sectors, this project represents a significant step towards more sustainable and efficient lithium processing in Australia.
